Sen.

Drilon: We are concerned about the financial health of PhilHealth and from what you’re saying,
apparently, there is nothing to worry about. Is that correct?
Mr. Cabaning: Yes. Mr. Chair. Number 1 what we are saying is that we still have money I just wanted
to go directly the fact we have 155 billion utang and then our equity is, while, low beyond that
meaning, to make sure your going concern is, let us just compute quickly in a matter of doing by
expressing it in a debt to equity ratio, yung reported may nireclaim si Akong na debt to equity ratio
noong June 30, siya po ang nag submit nito is yung utang natin is 147 is to 1. We have na 147 Pesos,
ang available natin payment, available pang bayad is 100. Okay, let me just quickly say that the true
debt to equity ratio, however, on June 30 is 170 is to 1, this is so because yung advance na 14.9 billion
hindi pa na charge sa income statement nabawasan yung equity natin na 14.9 billion. So I’m saying as
a caution to everyone of bearing hopeful about PhilHealth 170 is to 1 po yung debt to equity ration
natin. 170 ang utang 100 pesos available to pay. Your Honor, additionally I would like reinforce your
saying that there is favoritism on IRM. In your place in Iloilo the reason why hindi yan nabigyan is
because yung Regional Vice President doon is the perceived enemy of the ExeCom. She was the one
that supplies information that triggers the Senate hearing last year.
Sen. Drilon: *laughs* Thank you, Board Member Cabaning for that statement because I cannot accept
that people in Region 6 are the most inefficient in the entire country, that none of the hospitals claims
has been processed so thank you, Mr. President.
Sen. Sotto: Thank you, Sen. Drilon, the Minority leader. Dr. Jimenez wanted to make a statement,
please go ahead.
Dr. Jimenez: Good afternoon po sa inyong lahat. I’ll just doon sa sinabi po ni Sen. Drilon. Yung pong
pag bibigay ng IRM ay napaka gulo po, hindi po nalaman lahat ng ating mga ospital na meron such
name as IRM. Yung marimi pong ospital ay nag tataka saan ba ho nakuha yung advisory na yan. So yan
po, totoo po yung sinabi ko, twice ko po sinabi last hearing, yung pong napakaraming Covid cases sa
St. Paul hospital up to this point in time hindi pa po nakaka receive ng IRM and that would be
available sa ating madre na administrator ng St. Paul. So yun po ang pinapanawagan ko po, nag
lockdown na po ang St. Paul hospital up to now hindi pa po nakaka receive ng isang sentimo from
PhilHealth na IRM. Ano po ang nangyayari sa pabalik-balik na ano, pag nag follow-up po ako, pupunta
po ako sa Vice President, sasabihin ng Vice President “yung papel po ay nakay Gen. Morales na”, pag
tinanong ko naman po sa opisina ni Gen. Morales, sasabihin po sa akin “nandun na po sa Vice
President, just follow up” so umabot na po ng halos 3 buwan up to now wala pa po narereceive yung
region ni Sen. Drilon. Yun po ang katotohanan, totoo po sa ating mga collectibles, tinanong din po ni
Sen. Drilon, dun po sa 17 hospitals ng One Grace, yung mga ospital po, yung UniLab, ang collectibles
po nila ng Good Claims from PhilHealth ay umaabot na po ng 778 million plus, hindi pa po nakaka
kolekta up to now. Doon po sa mga Covid patients na hospital na nag ma-manage, very few private
hospitals po ang naka-kuha ng malaki except yung mga malalaking hospital dito po sa NCR, yung
maliliit po na hospitals ay yun po ang nakiki-usap sa akin na sabihin sa hearing, katulad po ng isang
maliit na hospital sa Batangas up to now ay wala pa rin pong IRM, yung isa pong ospital sa Antipolo
ganun din po. I will supply yung ating Secretariat ng mga letters nila to prove na sila po ay nag sasabi
ng totoo, so yun po ang sitwasyon natin kaya po pinakiki-usap natin na tulong-tulungan na po, provide
po the IRM na kailangan ng ospital. Binigay ko po sa Secretariat ni Sen. Drilon, Sen. Lacson, at Sen.
Sotto yung mga data po, so nandon po ang kwenta namin ng hindi pa po nakaka-receive ng IRM, kasi
alam ko po ang PhilHealth nag issue ng public release na may naibigay sila na lease pero kung ia-
analyze po, ang mga listahan po don ang nabigyan: dialysis center; maternity center; at yung pong
mga hindi ospital na nag ca-cary ng Covid. Naintindihan ko po, meron collateral damage yung mga
maternity and dialysis centers pero bakit po napaka-lalaki ng inissue sa kanila na IRM compared sa
mga hospitals na katulad namin na punong-puno na ho ng pasyente, cannot afford anymore, eh bakit
po kaliliit ng binigay po sa amin. Yun lang po, maraming salamat sa Senado at pinapakinggan niyo po
ang aming damdamin. Maraming salamat po and God bless to everybody.
Sen. Drilon: Mr. President, it would appear that the denial of the participating in these IRM is based
on vengeance rather than on need, because sa amin po hindi nila na-gustohan yung aming Regional
Director dahil yan po ang nag sumbong noong nakaraang taon, kaya lahat po ng mga ospital at mga
pasyente sa amin ay nahihirapan dahil lang po sa mga ganitong gawain.
Sen. Sotto: Thank you. Gen. Morales, you are asking for the floor?
Gen. Morales: Yes. Regarding the Regional Vice President in Region 6, I was the one who assigned her
in Region 6 and I have to reprimand her because she was slow in processing the IRM. So that was the
story behind the Region 6 issue ng IRM.
Sen. Villar: I was provided by PhilHealth yung mga list na binigyan nila ng IRM, I just want to inform
Sen. Drilon dun sa list ng Region 6, there’s only one hospital, Western Visayas Regional Hospital 121
million, for his information.
Sen. Drilon: That’s correct, there are 33 claims filed, out of 33 only 1
Sen. Villar: I just want to make the manifestation.
Sen. Sotto: Thank you, we acknowledge that.
Sen. Lacson: May I move that the following be granted legislative immunity: Board Member Alejandro
Cabading; Lt. Col. Etrobal Laborte; and Atty. Toson Kit.
Sen. Sotto: Is there any objection? If there is no objection the motion is approved. Sen. Ralph Recto is
recognized, you have 10 minutes.
Sen. Recto: Thank you very much, Mr. President. Mr. President I was listening attentively earlier to the
questions raised by all of you, including the minority leader, unfortunately medyo naputol yung linya
ko, I did not catch everything, but nevertheless, Mr. President, let me try to follow up on some of
these questions. First let me ask the PhilHealth, maybe the legal officer, who is the Chairman of
PhilHealth today?
Sen. Sotto: Who is the legal officer? Atty. Del Rosario?
Atty. Del Rosario: the corporate legal officer is Atty. Labre Jr.
Sen. Sotto: Atty. Labre?
Atty. Labre Jr: Yes, Mr. President. The chairman of PhilHealth as of today is the Secretary of Health,
Secretary Duque.
Sen. Recto: The Secretary of Health no? Okay, kung siya yung Chairman, sino naman yung ibang Ex-
Officio Chairman ninyo or rather Ex-Officio members ninyo? Your Secretary Duque as Chairman and
we understand why he is the Chairman. PhilHealth is a very important institution as far as health care
is concerned di ba? Okay, so who are the other Ex-Officio Chairmen?
Atty. Del Rosario: if I may, Mr. President?
Sen. Sotto: Go ahead.
Atty. Del Rosario: The other Ex-Officio Chairmen are the Dept. Of Finance Secretary Dominguez,
DSWD Secretary Gen. Bautista, the DBM Secretary, Secretary Wendell, Dept. Of Labor and
Employment Secretary Bello.
Sen. Recto: So these are the five under the Universal Health Care Law. Ang dahilan kung bakit natin
nilagay yan para bantayan precisely lahat ng allegations of corruption also in the PhilHealth. Ngayon
nagtataka ako, bakit wala sila dito sa hearing natin?
Sen. Sotto: We, originally, in the first committee hearing we did not deem it necessary because we
were concentrating on the officials of the PhilHealth. In the second hearing, we informed Secretary
Duque but we just got the request of Sen. Drilon yesterday so he was informed last night, he is now in
Davao. He said word that he is attending the next meeting.
Sen. Recto: Got it. Thank you. For that, Mr. President. The reason why I make mention of this is
precisely when we did write the Universal Health Care Law, we included them as Ex-Officio members,
sila dapat yung Big Brothers so to speak dito sa Board ng PhilHealth, para bantayan itong problema ng
corruptions na pa ulit-ulit na lang, most of these allegations we’ve heard in the past. And that’s why
we try to correct them, and like I said in the previous hearing we increased the penalties, may kulong
ngayon yan hindi lang suspension. May kulong! Yung mga maglalabag sa batas na ito, may mga
dagdag na penalty. Ngayon, and budget ng PhilHealth hindi ho ba mga roughly 250 billion? 150 yung
regular, another 100 billion sa mga reserve funds. Ang budget ng Dept. Of Health 100 billion lang, sa
makatuwid and budget ng buong health natin for 2020 lalo na sa pandemic na to ay roughly 350
billion, and yet itong pinaka mahalagang ahensya pang laban sa pandemic at yun ang problema natin
ngayon, ay parang napabayaan and we don’t hear anything from the Big Brothers of the Board so to
speak. Hindi ho ba may kinatawan ngayon dito ang Dept. Of Finance in the hearing? Aren’t they here
today? Is there a representative of the DOF here?
Sen. Sotto: We will check online
Sen Recto: Presently wala?
Almanza: Mr. Chair?
Sen. Sotto: Yes?
Almanza: Yes. I’m Almanza of the Bureau of Treasury, representing DOF
Sen. Recto: You represent the Secretary in the Board of the DOF? In the PhilHealth.
Almanza: Yes. Second alternate to the Secretary of Finance
Sen. Recto: So you sit in the Board?
Almanza: Yes, sir.
Sen. Recto: So what have you guys done in the Board to ensure that the finances are intact? What
policies have you recommended to the Board?
Almanza: For the assessment of the national health insurance fund, we recommended to the Board an
assessment by the Insurance Commission to check the fund sustainability as well as the actuarial
valuation because we also recognized that there are certain assumptions by the actuarial department
that we need to also check and validate so based on the moving assessment by the Insurance
Commission on the fund sustainability and also on the valuation.
Sen. Recto: But what about the corruption issues? What about the IT system that is the most
important? Have you guys double checked?
Almanza: Sir, on the corruption, we ummm, I’m one of the, what you call this, the most senior, in the
sense, member of the Board, but in one Board meeting I manifested and request an update because I
was there when the President directed the PhilHealth to cleanse the corporation. So I requested for
update from PCO Morales on the status of all the pending cases, but during that time he mentioned
that he is still investigating the pending cases, especially on the alleged corruption
Sen. Recto: How about the policies with regard to IRM? Didn’t you guys take an active part in that?
Para bantayan ninyo yung tamang pag gastos ng IRM funds? Di ba trabaho din nyo yon in the Board,
and that’s why the Ex-Officios are there, more so now that we have a pandemic.
Almanza: Sir, when it was presented to us in January, they mentioned that they are authorized to
propose funding or financing mechanism so that hospitals will have options and will have liquidity and
it was presented in January initially to respond to Taal. On the second time that it was presented, they
just highlighted the importance of having IRM to provide liquidity so that the hospitals will have
available funds to respond to this pandemic so that’s how the management communicated the IRM to
us.
Sen. Recto: We understand. The point is didn’t you guys, in the Board, discussed this issue na may
palakasan, halimbawa, dyan sa IRM na yan, hindi na bago ito. What assurance did you get from the
Management Committee, halimbawa, na walang palakasan dito, na tama yung pag gastos ng IRM.
That’s precisely your job in the Board, hindi ba? Hindi dapat trabaho namin sa Senado yan, trabaho
ninyo yan eh, but since hindi nyo nagawa yung trabaho ninyo, it is now in the Senate, isn’t that
correct?
Almanza: Sir. We raised the issue of release to the Management, the guidelines because we also
heard the complaints on the releases to hospitals, because the specific releases is being discussed in
the Board, only the high level, just on the policy side but the hospitals, the specific releases on the
hospitals were not discussed to the Board.
Sen. Recto: But that should be part of the policy, alam naman ninyo yung issue na ‘to matagal na ‘ to
eh, di naman nagbabago yan eh. But let me get to another point, let me stress the importance of all
the Ex-Officio members in the Board, kayo yung mga Big Brother dyan na taga bantay ng buong Board
ng buong management ng PhilHealth kaya kayo nandyan. So let me ask now COA, I think the COA
Chairman is here, how many COA people do we have in PhilHealth?
Tuazon: Good afternoon po. Actually we have 17 Auditors including 1 Administrative Assistant there
so he’s not doing any audit work, so out of 17 only 16 are doing audit work.
Sen. Recto: Okay, there are roughly 35,000 claims a day, don’t you think we have to ramp up the
number of COA people we have in PhilHealth?
Tuazon: Yes, sir. We recognize the fact na talagang COA lacked auditor personnel that I think our Chair
is in the best position to reply on that.
Sen. Recto: But what would you recommend? Kung kulang ang 17 ninyo, your 35,00 claims a day, ilan
ang kailangan ninyo dyan? Ang alam ko ang COA ngayon may opening 5,700 positions eh. In your
plantilla you have 5,700 position vacant, why can’t you put more in PhilHealth?
Chairman Aguinaldo: We have a lot of vacancy, unfortunately we have a huge number of people who
retire every year. For some reason a decision was made back in 2000 to stop hiring, by 2010 because
of this stop hiring decision, the number was less than 8,000 we are about 7,800 at that time. Now
we’re about 9,500 but part of the problem is, to give you an example 2 years ago, we hired 900
people, however, about 400 retired at that year, so our net hiring was only 100. We’re actually
ramping up because the audit scope is really broad and kulang talaga sa tao.
Sen. Recto: And you have an opening of roughly 5,700 people, is that correct?
Chairman Aguinaldo: Yes
Sen. Recto: So you could allocate a little more personnel for PhilHealth I suppose. I would presume
that to be a yes and if you would allow me, can I ask also the PhilHealth naman now, is there a
resident Ombudsman in PhilHealth?
Gen. Morales: Wala po
Sen. Recto: Ah wala. Yan ay suppose we should have a resident Ombudsman, so meron tayong 2
dagdag na COA, resident na Ombudsman, palagay ko makakatulong din yan. Now, let me move on,
just a few more questions, yung testing today, magkano na nagagastos ng PhilHealth sa testing ng
Covid patients? Let me get to that dahil ito ang pinaka mahalaga sa atin eh.
Sen. Sotto: The finance?
Sen. Recto: Yes. How much has PhilHealth spent for testing?
Gen. Morales: I estimate about 380 million, but our finance, maybe, can give more accurate figures.
Sen. Recto: But they’re abouts lang, not more than 400-500 million?
Gen. Morales: Opo
Sen. Recto: I’ll take your word for it. So napaka liit, you know why I ask this question is because
maraming nag rereklamo sa akin na local government na hindi sila nakakapag test dahil wala sila pera
pambayad, at ang pagka alam ko ang national government dapat ang magbabayad ng testing,
particularly in this situtation, it is the PhilHealth. We will never be able to defeat this virus if we don’t
test at kung wala tayong budget for testing, there should be a budget, you have a 150 billion in
PhilHealth plus reserve fund of another 100 billion. So why is it that we only spent 400 million, and im
not blaming you (referring to Gen. Morales) there must be a policy by the Board led by the Chairman
of the DOH, I suppose, na magkano ba ang gagastusin. So hanggang ngayon 400 million lang, ang alam
ko rin ngayon marami nag rereklamo na kung makapag test man din sila, it takes a week bago
lumabas, bumilis na nung nakaraang linggo, tapos ngayon bumagal ulet.
Gen. Morales: Sir, its the IRM we have advanced about 15 billion but we only received claims of about
1 billion so the claims are just starting to come in.
Sen. Recto: And those claims of 1 billion are part of the IRM or separate?
Gen. Morales: IRM po
Sen. Recto: So ito yung mga inadvance na ninyo, which incidentally, just for the record, let me say na
all of this was discussed during the debate on the Universal Health Care and if I remember the
language correctly, “the PhilHealth shall endeavor to be able to do advance payment” kasi ang
problema noong araw delayed yung payment sa ospital so walang problema as a policy yung IRM, ang
problema, kung meron man, yung palakasan. Di ho ba?
Gen. Morales: I don’t necessarily agree. We don’t accept that there is an influence in the release of
the IRM.
Sen. Recto: I understand where you’re coming from. But as presented by many of our colleagues here,
it would appear na meron na palakasan but I am not questioning the IRM. So let me move forward, so
as of today, ang nagagastos ng PhilHealth pa lang, if at all, for testing is 400 million pa lang, and for
Covid patients, if at all, the entire IRM of 14 billion, ang claim supposedly ay 1 billion pa lang. With
those numbers, there is no way na ma ba-bangkarote ang PhilHealth. Let me put that on record.
Second point, have you submitted to the committee already your latest financial statements for June?
I have not seen the latest financial statements of PhilHealth with the committee, have you submitted
them?
Gen. Morales: I think we have, but I think SVP can confirm that
SVP Lim: Mr. Chair, your Honor. We will submit June FS.
Sen. Recto: So the June has not been submitted yet, is that correct?
SVP Lim: Yes, sir.
Sen. Recto: Okay. Now I’m a bit concerned when they say that the debt to equity ratio, as I presented
last time in our last hearing, malaki ang surplus ng PhilHealth, isn’t it that you have a retained
earnings of about 110 billion? Eto yung reserve fund ninyo.
Gen. Morales: Yes, sir
Sen. Recto: Wala pa naman kayo nagagastos dun ah, ni isang sentimo.
Gen. Morales: Yes, sir. We still have a reserve.
Sen. Recto: Correct, in fact, even today, your benefit payments as of today are probably lower than
what you paid last year kasi walang claims sa inyo eh. Takot ang tao pumunta sa ospital eh.
Gen. Morales: That’s correct po.
Sen. Recto: If of all of your revenues are hit are the member’s contribution today, dahil maraming
nawalan ng trabahao.
Gen. Morales: Opo
Sen. Recto: But as far as sin taxes are concerned, you should not get a hit because that’s two years
preceding, yung nakolekta two years ago ang mapupunta sa inyo this year.
Gen. Morales: Nasa 71 billion na po yung nakuha namin.
Sen. Recto: Correct. And that’s why the DBM Secretary sits in your Board, yung utang ng national
government as prescribed by law, dapat ibigay sa inyo.
Gen. Morales: Opo, if according to law, galing ho sa sin taxes.
Sen. Recto: That’s correct. So I just want to put it on record, Mr. President, I do have a lot of
suggestions, I will submit those in writing at the appropriate time. I’d like to thank the resource
persons for answering our questions and I have no further questions for now.
Sen. Lacson: I have a related issue.
Sen. Sotto: Sen. Lacson, related to what Sen. Recto has pointed out.
Sen. Lacson: How do you treat PhilHealth’s recurring restated financial statements due to prior years’
adjustments? Paano tinitignan ng COA ito?
Chairman Aguilar: *mostly inaudible due to connection issues* Perhaps, Director Ted you can
elaborate?
Sen. Sotto: Alright, please Director Ted
Tuazon: For 2018 po, because we are not yet finished with our audit of 2019 so we don’t have 2019
annual audit report yet. But for 2018 po, we issued a disclaimer of opinion because we are not able to
be given the full access of their IT system, as well as, we were not given supporting documents for all
those adjustments that they made.
Sen. Lacson: So you are helpless because PhilHealth is not giving you access to their financial records,
is that what you are saying? So what would you do given the situation or problem?
Tuazon: We are required to issue an opinion on the fairness of the presentation of their financial
statements, considering that we were not able to prove the correctness of some of those accounts,
particularly of those that has adjustments because we were not given the necessary supporting
documents, we were not able to have substantive testing of all those documents. And besudes, as I
have said, we were only given access of the system some time in May already when we were already
issuing the Audit observation Memorandum and preparing the Annual Audit Report. When we were
not given the supporting documents, medyo doubtful na po ako. During the Exit Conference po, I told
them, because according to them na the adjustments were made at the head office, but according to
them, when we were asking for the documents to support those adjustments, they said its in the
regional offices. So just to prove that there are supporting documents in the regional offices during
the Exit Conference, I told them “I am giving you additional time, please request your regional offices
to submit those documents supporting those adjustments and I will assign people” kahit tapos na po
kami ng audit, we are willing po to extend for those supporting documents to be audited. Pero wala
po talaga silang na I-submit sa amin, so we were constrained to issue a Disclaimer of Opinion.
Sen. Lacson: And this is not one time situation di ba? Parang year-in year-out recurring itong ganitong
problema, yung restated financial statements due to prior year’s adjustments.
Tuazon: Yes po
Sen. Lacson: It appears that it is being done deliberately either to confuse COA or to make life difficult
for you.
Tuazon: Okay lang naman po sana if they were able to submit to us the documents so we can validate,
we can review, we can audit, but ang naging problema nga po eh we were not given the necessary
documents eh, eh may deadline din naman po yung submission namin ng Annual Audit Report so
we’re constrained talaga to issue a Disclaimer of Opinion.
Sen. Lacson: Don’t you think a special audit is necessary?
Tuazon: There is already, sir.
Sen. Recto: Mr. President, just one final rejoinder on this issue, if I may
Sen. Sotto: Go ahead
Sen. Recto: Meron kinatawan ang Dept of Finance represented here today by the Office of the
Treasurer. Ang Insurance Commission is also under the Dept of Finance, trabaho nila bantayan din
yung financial statement ng lahat ng GFIs. Ang PhilHealth ay pang anim na pinaka malaking GFI sa
Pilipinas, more than 250 billion worth of funds, dito tayo nagpapaka hirap sa Bayanihan 2, 150 billion
ang pinag-uusapan. Eto 250 billion at parang pinabayaan kaya let me put that on record, Mr.
President. Thank you very much.
Sen. Sotto: Thank you, Sen. Recto. We now recognize Sen. Imee Marcos. Go ahead.
Sen. Marcos: Thank you very much, Mr. President. Nauna pa sa Covid na pandemiya na hinaharap
natin ay yung pneumonia, yung pneumonia sa pagka-alam ko dati kasama yan sa mga reportable o
kaya notifiable diseases. So eto nga ang sinasabi eh wala na ito sa listahan ng mandatory reporting.
Pwede ba tanungin kay SVP Fargas, kayo yata ang in charge dun sa claims processing, totoo ba na
itong communicable disease na pneumonia na ka-alyado ng Covid eh hindi kasam dun sa reportable
diseases?
SVP Fargas: Mr. President, madam senator, I think all infectious diseases po are part of the reportable
diseases, but I will have to confirm on that with the Dept. Of Health.
Sen. Marcos: Yes. Ang pagka-alam ko hindi sila kasali kasi nandito hawak po namin yung mga listahan
at mga form na binibigay ninyo, wala naman yung pneumonia, eh kaso nga maraming nagsasabi, ang
pneumonia ang number 1 sa lahat ng claims, at taon-taon halos pareho ang kine-claim, halos 10
billion. Lumagpas nga lang 2019, mag e-eleven billion halos. Ang sabi rin, palibhasa hindi reportable
ang pneumonia na siyang number 1 na claim, hindi ito na a-audit, totoo ba yon? Kasi ang mga
municipal health officers ho natin dito sa local government ang sabi nila ni-wala silang report nito,
lalong-lalo na sa mga ospital na pribado, totoo ba yun?
SVP Fargas: Mr. President, madam senator, on the part of the PhilHealth po, actually ang pulmonya ay
isa po yan doon sa ating mga claims na dumadaan sa Medical Pre-payment Review, ibig sabihin yun
pong mga claims ay nire-review muna noong ating mga doctor at dito po ay tinitignan kung ito po ay
pasok sa admissibility criteria. Pangalawa po, ang pulmonya, ang chine-check po dito sa ating Medical
Pre-Payment of course is yung requirement natin na CF 4 o yung Claims Form 4 kung saan naka sulat
po doon yoong history ng pasyente, kung ano yung signs and symptoms, and kung ano yung mga
gamot na ginawa at laboratoryo na ginawa. Ito pong pulmonya ay kasama pa rin po sa ating ginagawa
na Medical Post-Audit, ibig sabihin matapos mabayadan ito po ay kasama pa rin sa ino-audit ng mga
auditors na nandun po sa region, so on the part of PhilHealth, bago po mabayadan yung pulmonya,
ito po ay pumapasok po dun sa ating review na pwede po nating tawagin na audit.
Sen. Marcos: Ang sabi po eh wala daw report yan sa local at ang PhilHealth daw ay hindi nag bibigay
ng breakdown sa amount of the claims, yung total lang ang bibigay, pero walang breakdown na
binibigay sa level 1 at level 2 na ospital. Eto na yung upcasing sa level 1 at level 2, uubo ka lang, may
sipon-sipon ka lang, may sakit ng ulo kunyare, eh biglang Moderate Risk Pneumonia na ka-agad
upcasing na nabonggang-bongga ang nangyayari, from 2,000, 3,000 o di kaya tylenol o aspirin biglang
15,000 na ang ibibigay sa Moderate Risk Pneumonia, totoo ba yon? Sabi nila ito ang pinaka-common
daw eh.
SVP Fargas: Ang atin pong pakete sa pulmonya para sa moderate type is 15,000, its around 32,000,
kasama po sa polisiya ng PhIlHealth.
Sen. Marcos: Eh mas malaki pa pala, mali pa pala yung 15,000 ko. So 32,000 ang na u-upcase sa mga
bayaring pneumonia.
SVP Fargas: Mr. President, madam senator, dalawa po kasi yung binabayaran natin sa pulmonya, ito
yung moderate type which is 15,000 at yung severe type yun pong 32,000. Yun pong mga mild
pneumonia naman….
Sen. Marcos: Ang kwento po sa akin, wala naman daw nag u-upcase sa level 3 hospital at ng high risk
kasi kailangan may ICU na yon, magkaka-bukohan na daw sa PhilHealth. Totoo ba yon?
SVP Fargas: Tama naman po yun, dahil ang severe type ng pneumonia po ay mas tindi ang gamutan,
maari po talaga na ipasok sa ICU, or may mga ibang kailangan pang gawin sa kanila, however, yun po
naman mga severe type ay hindi lang po pang level 3 hospitals, pwede rin po sa mga level 2. Kaya po
yung ating mga pneumonia ay, again, dumadaan po sa Pre-Payment Review bago po mabayadan,
Sen. Marcos: May I inquire kung pwede hingin, kasi matagal na po hinihingi kay SVP Fargas, how much
is claimed and paid to level 1 and level 2 hospitals for Moderate Risk Pneumonia, matagal na naming
hinihingi yan, last year pa, kung ano yung breakdown dyan sa level 1 and 2 kasi pagka-laki-laki ng nire-
report out ninyo, kung sana ma-ibigay ninyo sa committee yon.
SVP Fargas: Yes po, we will provide to the committee po
Sen. Marcos: Yes, I think those records had been withheld for a long long time, pati yung local
government humihingi nyan, pati yung ating COA na-hingi nyan, mukang kulang na kulang, bakit ang
taas-taas ng pneumonia, halos uniformed taon-taon yung 10 billion, wala bang epekto yung
vaccination ng DOH? Akala ko malaki-laki yung vaccination para sa pneumonia, palibhasa number 1
nga.
SVP Fargas: Maari na meron epekto yung ginagawa po ng ating departamento pag dating sa
pagbibigay…
Sen. Marcos: Parang hindi, kasi nag umpisa sa 9 billion, nasa 11 billion na. Nag va-vaccinate ba talaga
tayo o hindi?
SVP Fargas: Sa pagkaka-alam ko po ay meron nama pong vaccination program and Dept of Health.
Sen. Marcos: Okay
SVP Fargas: Sa part po ng PhilHealth, hindi po kami nagbibigay, wala po kaming vaccination program.
Sen. Marcos: Alam ko na wala kayong vaccination program, gusto ko lang na mag comment kayo kasi
lumolobo yung pneumonia na hindi naman notifiable samantalang gumagastos din tayo ng halos 2
billion para sa vaccination program, nagtataka lang po. So if I may request, Mr. President, that we
urge the DOH to please give an assessment and breakdown for the pneumonia vaccination, as well as,
their insights on the failure to include pneumonia, the number 1 claim in all the top medical diseases,
among the notifiable. Perhaps also inasmuch as this investigation is in aid of legislation, despite the
newness of RA 11332, we should look at it once again in order that the claims, the top medical
diseases should be blended with the reportorial requirements, para hindi nagkaka-gulo. May I call on
now SVP Del Rosario, please?
SVP Fargas: I think he was brought to the clinic for an increased blood pressure, ay eto na po.
SVP Del Rosario: Apologies, Mr. President.
Sen. Sotto: Accepted. Sen. Marcos, go ahead.
Sen. Marcos: SVP Del Rosario, ano po yung Corporate Integrity Committee? At ikaw daw po yung head
doon.
SVP Del Rosario: That’s the PhilHealth’s Integrity Committee.
Sen. Marcos: Anong ginagawa don? At bakit po kayo naging head non?
SVP Del Rosario: The Board of Directors designated me as the PhilHealth’s Integrity Committee.
Sen. Marcos: I see. Is that because wala kayong kaso katulad ng sinabi ninyo kanina?
SVP Del Rosario: Ano po?
Sen. Marcos: Is that because unimpeachable ang inyong integrity kaya kayo ang pinili ng Board para
mag head noon? Kasi sabi niyo kanina, wala naman kayong kaso.
SVP Del Rosario: That’s the Board to answer.
Sen. Marcos: I’m sorry? Paki ulit po
SVP Del Rosario: That’s for the Board to answer kung sino po mga nilagay nila sa committee.
Sen. Marcos: Hindi, tinatanong ko kasi sabi mo kanina na wala ka pang kaso, hindi ka naman
kailanman nakasuhan.
SVP Del Rosario: I never said that, Mr. President, madam senator.
Sen. Marcos: Yun ang pagka-rinig ko kasi ang balita ko 2005 pa lamang nahatulan ka ng guilty doon sa
overpricing and fixed bidding of the PhilHealth building, yung new building katapat ng SSS sa East Ave,
tama po ba yon?
SVP Del Rosario: There was an investigation against me on 2005 when I was the head of the Physical
Infrastructure Resource Department.
Sen. Marcos: Is it not a fact that a guilty verdict was issued against you and as a matter of fact si SVP
Dalma and DM Marsan tinanggal?
SVP Del Rosario: The decision was arrived at 2012, the case was, as far as I was concerned was, a
persecution. I was charged but I was fined…
Sen. Marcos: But is that not a guilty verdict which you managed to commute upon the change of Dr.
Ray Aquino to Dr. Banson, biglang fine na lamang.
SVP Del Rosario: No. I was not adjudged guilty until Dr. Banson assumed PCEO, Mr. President. So that
was a case in 2005 that was decided in 2012, the verdict is that I was guilty of neglect of duty and was
fined for 15 days salary.
Sen. Marcos: So you were saying at no point were you criminally liable but you now admit that in fact
you were found to be administratively guilty.
SVP Del Rosario: You are putting words in my mouth, I never said that I was never charged and that is
not correct.
Sen. Marcos: Yun kasi yung tanong ko kanina, kaya kina-clarify ko lang.
SVP Del Rosario: Thank you, madam, but that is not what I’ve said.
Sen. Marcos: Okay, so ano ang nangyari sa Region 1 kasi alam naman natin kanina binaggit na ni
Belica, nabanggit na rin ni Sen. Zubiri, ang dami ng nag banggit ng Region 1, at ang alam natin dyan ay
kasama ka yata sa 13 people na who were criminally mentioned and doon sa fake cancer claims ni
Atty. Emily Roque, pero ang ending eh wala na-naman daw na prosecute. Ano ba talaga ang nangyari
don?
Svp Del Rosario: That is incorrect, I was never implicated in that case. That case was investigated by
Ombudsman, 1 employee from region 1 was convicted.
Sen. Marcos: Please provide the committee with the report. The Anti-Fraud Division issued a 200-page
report, pagka-tapos nung yung Internal Audit Report, kaya lang nung nag filing, nag disappear
nanaman. Tama po ba yon?
SVP del Rosario says he is not in the best position to answer that as he has no official role in that
investigation and in the…
(Interrupts SVP) Sen. Marcos confirming if he’s RB of PhilHealth at that time.
SVP del Rosario says but also added that the resolution of administrative cases is a centralized set up.
Sen. Marcos now says that SVP del Rosario is a controversial man because on 2018, they heard that
the building of Sec. Duque was renewed as the HQ of Region 1, but the news that circulated was that
SVP del Rosario was the OIC in Davao.
SVP del Rosario says yes but also says that there people who wants to pin him down. He further
explained that when he signed the documents, he was still the Regional VP of Region 1.
Sen. Marcos now asks if he had two positions at that time, assistant in the Region 1 and OIC in Davao.
SVP del Rosario says that he never assumed in a contrary capacity, he was Regional VP in Region 1 and
was reassigned in Davao and now points that this is one of the reasons why people are after him
because he wento Davao against their wishes.
(Interrupts SVP del Rosario) Sen. Marcos now asks the numerous cases in Corpus Clinic that started
with 10 beds with the yearly release of 40-300 million release from PhilHealth, why was there no filed
cases there and is now asking for updates on that matter.
SVP del Rosario says that it is not true that the cases did not proceed.
(Interrupts) Sen. Marcos asks why is there no verdict.
SVP del Rosario says that he will submit the report on the status of the cases against Corpus. He says
that there are complaints already filed and criminal cases are being readied by the PhilHealth. He
adds that if the Anti-Fraud office in Region 1 says that he failed to act on the reports, when did they
draft the criminal complaints and when did they give to him the said drafts for the filing of the
criminal complaints. He also adds that it is not the Regional VP that prepares the pleadings but the
Legal Office.
(Interrupts SVP del Rosario) Sen. Marcos asks now that he’s (del Rosario) is the SVP for Legal, did they
pursued these cases because based on their knowledge, nothing is happening.
SVP del Rosario says the they had directed the regional offices thru the President (Gen. Morales) to
file criminal complaints.
(Interrupts SVP del Rosario) Sen. Marcos asks that as head of Legal and former head of RB of Region 1
with intimate and personal knowledge of these scams, have they done nothing on their own?
SVP del Rosario says that he drafted the guidelines on how the criminal complaints and PRC
complaints will be filed in the regional offices. He now says that this is a terranean problem of
PhilHealth where criminal complaints are not filed. He also says that during his time as SVP Legal, he
has forwarded to the NBI numerous documents based on the Midas reports that identified where the
incidents of fraud are rampant which does not include Region 1.
Sen. Sotto, noticing that del Rosario keeps on mentioning “these people”, now asks who they are
SVP del Rosario first gives a background, there was an Anti-Fraud Task Force where a Data Analytics
Study was presented that showed incidents of fraud. Said report prompted the management to
reassign the regional heads for a more transparent investigation.
(Interrupts SVP del Rosarion) Sen. Sotto says that he (del Rosario) is not answering his question as he
did not ask “why” but “who” are these people that are against him
SVP del Rosario says that these people were identified by Dr. Salvador during last year’s Blue Ribbon
Committee and that they had been charged administratively for different offenses and some of these
cases were filed when he was the SVP of Legal, these people are claiming that they had been
oppressed and it started when they had been reassigned. (at this time Sen. Villanueva is asking for a
Point of Order)
Sen. Sotto asks if these people that he has filed cases against.
SVP del Rosario says yes
Sen. Sotto now asks where are these people
SVP del Rosario says there still with PhilHealth
Sen. Villanueva says that he raised a Point of Order because Sen. Sotto asked “who” are they but until
now they have not heard any names.
Sen. Marcos is in agreement with Sen. Villanueva, now says that he (del Rosario) is imputing ill
motivation from whoever does he (del Rosario) feel that these information came from. She says that
she did not obtained these information from the “these” people Del Rosario keeps on mentioning.
She also added that she knew of these incidents because they are notorious cases in Region 1. Now
she asks if she could have a closure report or synopsis of the 2005 case under Dr. Aquino regarding
the rigged bidding and overpricing of PhilHealth HQ and his alleged participation in the same, if there
is a report on the 220 cases pending against Corpus Clinic, and finally a list of “these” people.
SVP del Rosario clears that he was not charged in any rigged bidding and that the case filed against
him was for, allegedly, inserting budget in the presentation of the PhilHealth board.
Sen. Marcos says the reason why she is asking for his version, where is the synopsis and summary
because the document they have has a guilty verdict in the administrative charge in the PhilHealth
building.
Sen. Lacson asks for the status of his case in the CSC, invalidated appointed
SVP del Rosario says the reason for his invalidation was moot and academic
(Interrupts SVP del Rosario) Sen. Lacson says he’s only asking for the status of the case
SVP del Rosario insist that it is already moot and academic
Sen. Lacson says that he is not asking for the merit of the case, but the status.
SVP del Rosario says he withdrew the appeal.
Sen. Lacson says that based on the record of the CSC, the case was still pending.
(SVP del Rosario was about to comment but Sen. Lacson interrupts) Sen. Lacson says its a matter of
record.
SVP del Rosario says he already withdrew the protest since there was no need because he was
appointed to a higher position which was validated by the CSC.
Sen. Lacson says he’s confronting him (del Rosario) with the record of the CSC which is still pending.
Sen. Sotto now ask what was the administrative case Sen. Marcos mentioned that he (del Rosario)
was found guilty of.
SVP del Rosario says the case was about the budget of the corporate center
Sen. Sotto says that he is asking for the title of the case and not the nature of it
SVP del Rosario says budget insertion
Sen. Sotto asks if it is overpricing
SVP del Rosario says that they are claiming (before he finished, he was again interrupted)
Sen. Sotto says still insist on what is the title of the case and is confirming if it is overpricing.
SVP del Rosario insists that it is budget insertion
Sen. Sotto directs the Secretary to get a copy to find if he’s (del Rosario0 is committing Perjury.
*Sen Poe is now given 10 minutes*
Sen. Poe says that her questions about the qualifications of Gen. Morales. She says that the GCG has
recommendatory powers to give to the President qualified board members for the PhilHealth based
on the Universal Health Care law requirements. She now asks Mr. Gadmin of GCG for the qualification
of their recommendation to the President for a member of the board of PhilHealth.
Mr. Gadmin says it is based on the charter, then the fit and proper rule, thereafter recommendation
of stakeholders, then they prepare a Memorandum, then the President will choose.
Sen. Poe points that Mr. Gadmin might have missed the requirement that a member should have a
minimum of 7 year service in public health, finance, management or economic experience.
Mr. Gadmin was in accordance but says that it is for the position of the President, but based on the
Universal Health Care Law, it is the Board of PhilHealth who will recommend who is to be the
President based on the 7 year requirement.
Sen. Poe ask that for the President of PhilHealth, the 7 year requirement is needed but not for the
Board member.
Mr. Gadmin says yes and says that based on law it is the Board who will recommend who will be the
President of PhilHealth.
Sen. Poe says that Gen. Morales was recommended as a Board member because of his sectoral
representation.
Mr. Gadman says yes, for indirect contributors.
Sen. Poe now asks for the sectors which supposed to have been represented
Mr. Gadman says those not employed, OFWs, and those thru compensation from an employer
Sen. Poe clarified that those persons are identified as indirect contributors in DSWD, beneficiaries of
the 4Ps, Senior citizens, PWDs. Now she ask where Gen. Morales belongs.
Mr. Gadmin says he is from Senior citizens and employees sector
Sen. Poe now says that for the Board to choose, said person must have the 7 year requirement and
now asks if there is a Board Resolution saying that he (Gen. Morales) is qualified
Mr. Gadmin says he is not a privy to that and that is a concern for the PhilHealth Board
Sen. Poe is now asking if someone can attest to Gen. Morales’ qualifications
Atty. Mangaoang says there is a Board Resolution
Sen. Poe now ask if Gen. Morales actually complied with the requirements
Gen. Morales now explains his qualifications
Sen. Poe confirms that his qualification largely falls on the management sector and not necessarily
public health. Now she mentions that GCG should rate these appointment if they are actually
qualified to continue
Mr. Gadmin says he (Gen. Morales) is a direct appointee of the President but he is also included for
evaluation
Sen. Poe ask if there was a performance deliberation
Mr. Gadmin says his staff will submit
Sen. Poe confirms if there is nothing yet
Mr. Gadmin says “meron na siguro”
Sen. Poe says that Mr. Gadmin should know this fact and ask if Mr. Gadman had already convened
with the members of the GCG for the evaluation of Gen. Morales
Mr. Gadmin says he will look if the 2019 documents has already been submitted
Sen. Poe says when the issue of PhilHealth arose, GCG should have made necessary steps on his
evaluation because if he (Gen. Morales) performed poorly, that could have been the basis to remove
him. She now ask for Mr. Gadmin’s personal assessment.
Mr. Gadmin says PhilHealth did not pass the scorecards for 2017 and 2018, there is still a need for
submission of documents for 2019.
Sen. Poe asks that from the time Gen. Morales joined PhilHealth, he (Mr. Gadmin) still has no
evaluation and she’s sure that documents may have already been submitted to him and now asking
for his recommendation
Mr. Gadmin says since it is based on data, he could not speculate and it would be unfair to judge him
based on a conjecture.
Sen. Poe says he has not really done his responsibility of reviewing since it is already pass the one-
year mark
Mr. Gadmin not necessarily agrees with her statement as he could access the system
Sen. Poe says that he could have made necessary steps even before coming to the hearing because he
knew that this was about to be discussed, that he should have taken a look in his records, it is his
responsibility how the ones they recommended is actually doing.
Sen. Poe now asks Gen. Morales if he underwent training as required in the UHC law as non
compliance is a ground for dismissal.
Gen. Morales says yes and provides details on the length of the trainings.
Sen. Poe asks the nature of the training he underwent.
Gen. Morales says it is about Board activities
Sen. Poe now ask what step does he (Gen. Morales) has taken to be more aware of the public health
situation in the country.
Gen. Morales now gives details about the public health situation.
Even with these steps taken, Sen. Poe points out that there are still a lot of complaints from the
various sectors despite the policies laid down by Gen. Morales. These gives doubt that Gen. Morales is
in tune with the public health sector.
Gen. Morales says that those issues are not new and already in existence even before his
appointment.
Sen. Poe now ask what steps had he taken to curb corruption in the PhilHealth
Gen. Morales said there is a need to put a IT system but miscalculated the length on which it is to be
operational, there is a need of a large-scale revamp.
Sen. Poe points that even if the IT system is top-notch if the ones running it are rotten, nothing will be
changed and one of his staff already said that there was a recommendation for a lower cost IT system
but was never encouraged. She now ask the list of those who actually won the bids with the
PhilHealth.
Gen. Morales says these companies are providers but are not capable of providing what PhilHealth
needs, they could not provide information system development needed by PhilHealth.
Sen. Poe now asks about Morales’ indirect contribution, on how he is identified with any of them
Gen. Morales points out him being a senior citizen
Sen. Poe asks what contributions has he actually done in that sector.
Gen. Morales cannot provide an answer to that question.
Sen. Poe asks Mr. Gadmin what are the categories that would guide him in his evaluations
Mr. Gadmin says that there is a basis in accordance to a circular. That there is an actual scorecard.
Sen. Poe says based on the criterias he mentioned, it would seem that Gen. Morales would fail, which
Mr. Gadmin says yes.
Sen. Sotto is now seeking clarification on Gen. Devilla’s reason for resigning, particularly the third
reason.
Gen. Devilla says that he resigned voluntarily. As he was already a senior citizen when the pandemic
hit. He also mentioned that some of the members of the ExeCom does not trust him, which was
mentioned by Gen. Morales himself. He mentioned theories on why he was not trusted, one of them
is that his non-participation in the ExeCom Group Chat. Another is that he saw some agendas were
still immature for discussions in which he takes notice of such.
Sen. Lacson ask if it is true that Gen. Devilla opposed the implementation of the IRM
Gen. Devilla says he has a recommendation of the areas that should be given based on the number of
Covid incidents. He adds another theory about his close association with Cabading, Col. Laborte, Atty.
Kit. These doubts are the ones that prompted him to resign.
*Sen. Hontiveros is now recognized*
Sen. Hontiveros says points that she is sick and tired that she is being linked in a fake news in the
irregularities of PhilHealth but she is more sick and tired of the fact that there is nobody being held
accountable for the largest amount of allegedly corrupted fund in PhilHealth’s history. She adds that
she wants to know the length of involvement of Sec. Duque. She gives background of Duque’s
involvement with the PhilHealth. She now ask Atty. Keth if the names she’ll mention is part of the
“mafia”.
She now mentions 8 names in which Atty. Keth answers not a member or “hindi pa name-meet.”
Sen. Hontiveros aks if an investigation was initiated about these persons.
Atty. Keth says these persons has no capacity to steal.
Sen. Hontiveros asks if they were investigated for their alleged activities last year in which Atty. Keth
answered in the negative.
She now asks Cabading, as he was the one who gave names to these “mafia”, does the names she
mentioned not a part of the “mafia”? All 8 names she earlier mentioned were denied by Cabading as
members of the Mafia.
Sen. Hontiveros now is asking for clarifications of former President Ferrer, Board member Salvador in
naming these persons.
Cabading says that these 8 persons are heroes, the ones who mentioned of the operations of
PhilHealth, all the information given to him are from these 8 persons.
Sen. Hontiveros asks if former president Ferrer and Board member Salvador are not true/lied about
these 8 persons.
Cabading says yes.
Sen. Hontiveros is now looking for persons named as members of this “mafia” and is asking if they can
be invited for the next hearing.
Sen. Hontiveros is now looking for the perosns named in the mafia 2020.
She now questions del Rosario on who are this “mafia” SVP del Rosario says the word mafia came
from Gen. Acop. She now asks who is this mafia or this group that has influence in the PhilHealth. Del
Rosario says that its the people named by Dr. Ferrer.
She now questions SVP Masse on why he is named as one of the mafia. He says that he is being
accused as a member.
She now questions SVP Limsiaco, is there a reason why is he being accused as a member of the mafia.
He does not understand why is he being named a mafia.
She now questions Secretary Mangaoang on who this mafia is. He’d rather give presumption of
regularity.
She now questions Gen. Morales if he maintains that there is a “Mindanao group’ which he disclosed
on a hearing on 2019 and now asking for their names. Gen. Morales first said that it is based on
hearsay and names 3 persons. She now ask who are the ones who has inordinate influence on the
PhilHealth. Gen. Morales said that it is difficult to pinpoint because the Regional VPs are independent.
She says that she is not necessarily looking for RVPs but those persons who has a say to the
PhilHealth. Gen. Morales names 2 persons, Alonto and Macobato, because he could not move them.
Sen. Hontiveros insist the need of Sec. Duque to attend these hearings.
Sen. Villanueva is now recognized. *he is now showing a presentation on the PhilHealth issue*He asks
Gen. Morales how much is there pending claims under PhilHealth’s Regular Payment of Claims in the
Freestanding dialysis clinics. Gen. Morales will give an update as he does not have exact data. He
mentions that the dialysis clinics mentioned in the presentation are located in high Covid areas, thus
the reason why even if they do not provide covid service, they are covered by the pandemic
mentioned in the Bayanihan Law.
Sen. Villanueva now ask how the IRM limit is computed, he gives an example on B.Braun as the IRM
Limit and Release are the same figures. Gen. Morales explained that the IRM limit is based on the 90-
day historical claim of the clinic. Sen. Villanueva again ask how it is computed. Gen. Morales says that
they look into the claims record divided by 365 * 90.
Sen. Villanueva mentions that there are facilities that was not able to receive their IRM limit but they
are needed as they are Covid referred hospitals. He further gives examples where the IRM limit is not
100%. Gen. Morales says that it is up to the hospital if they want to avail the whole 100%.
Sen. Villanueva asks Atty. Keth that those given 100% are red flags. Atty. Keth says yes, that it gives
undue injury to the government.
Sen. Villanueva points on record that the IRM is being used on favored clinics of PhilHealth.
Sen. Go is now recognized. He asks to Gen. Morales on whether he would cooperate to the Task Force
to purge the corruption in the PhilHealth. Gen. Morales says yes. Sen. Go asks if there is a way for
PhilHealth to suspend these people suspected of committing fraud, if there is such, why is it not
implemented. Gen. Morales says there is and it is already implemented. Sen. Go says that there might
be a need to amend laws to implement outright preventive suspensions to avoid further influence.
Sen. Go ask COA on the status the special audit on PhilHealth. Aguilar now answers there was some
delay because of the quarantine but the audit is still on going. Sen. Go now ask if the IRM can be
included in the audit. Aguilar says that the advice of the auditors is to speed up the liquidation
process to determine the allocation of the IRM. Sen. Go ask if there are mistakes in the amount given
in the IRM. Aguilar says it seems possible, there is a need to determine how much those were and
there has to be some basis.
Sen. Go now ask PACC that if it is correct that fraud is bolstered by the ineffective legal sector of
PhilHealth. PACC answered that based on their findings because of the lengthy legal steps in
PhilHealth, there is a lot of opportunity for corruption. There is a possibility of “areglo” in every step,
evidenced by little cases filed by PhilHealth to the courts. Sen. Go ask if there is a need to create a
special office, separate from PhilHealth, who will handle the cases. PACC said its ideal but the office of
PACC or NBI can be utilized more cost efficiency.
Sen. Go now asks Gen. Morales on the length of service of the RVPs. Gen. Morales says that RVP are
rotated regularly except for 2 which gave health reasons as an excuse. Sen. Go mentions that the IT
system will curb the corruption, now questions that how will it help in minimizing corruption. Gen.
Morales says that it can identify if a member is really alive, with less human interaction, fraud will be
minimized.